At Viking Client Services, the majority of the work we do is in subrogation. Subrogation claims are common in the auto insurance industry, but they can happen with other types of insurance, too. The topic of subrogation can get confusing, so here is a quick overview of what subrogation is as well as when it might be used in business and personal settings.
What is Subrogation?
Subrogation is a common term in the insurance world. It refers to the right that an insurance carrier has to step in and pursue a third party that caused damages or injuries to the victim in an accident. This protects both you and your insurance from having to pay for repairs or other expenses when an accident was not your fault. Though it’s most often used in auto insurance, subrogation can happen in other contexts as well.
How Subrogation Works in Business Situations
Subrogation can happen in various business situations that involve any kind of damage or injury. For example, say you own a rental property. If a tenant does something that causes damage to a rental property, such as starting a fire, your insurance will step in, paying for the damages to the property. They will then pursue the tenant to cover the expenses for the damage they caused. Workers’ compensation is another example. If an employee is injured while on the job, the employer’s insurance pays out the workers’ compensation to cover the employee’s expenses. If a third party caused the injury to the employee, the employer’s insurance steps in to represent the injured worker and pursue payment from that third party.
How Subrogation Works in Personal Situations
The most common example of subrogation in personal situations is car accidents. If you get into a car accident and are not at fault, your insurance carrier will file a claim. They work to help cover your expenses, such as car repairs or medical bills if you were injured. After paying for these damages, the insurance carrier will then seek subrogation from the insurance of the at-fault driver to cover the expenses that they paid. Most of this work happens behind the scenes. If your insurance carrier wins the case, they get compensated for their losses. You could even get reimbursed for your deductible.
When it comes to the rental car industry, subrogation gets a little more complicated. Who pays for the damages if you get into an accident with a rental car? There are multiple insurance companies at play: your insurance, the insurance of the rental company, and the insurance of the driver at fault. Subrogation allows each of these companies to communicate with each other and figure out who needs to pay what (and to whom).
It’s also worth noting that different states have different laws around liability policies for the renter and car rental companies. Many times, rental car companies allow the renter to pay for and sign a collision damage waiver (CDW). This may also be called a loss damage waiver or physical damage waiver. If the renter chooses to sign, any losses that happen in an accident fall upon the rental car company. If the renter does not sign, they are responsible for those losses. Each CDW is different, however, and may have certain exceptions or parts of the car that are not covered. CDWs can also vary between rental car companies and states.
What is Viking Client Services’ Role?
At Viking Client Services, we specialize in navigating the complexities of subrogation for both rental car companies and insurance providers. Our dedicated subrogation specialists manage the entire claims process—from initial notice of loss to final recovery—ensuring efficiency, accuracy, and compliance. With decades of experience and strong partnerships across the industry, we streamline communication, minimize disruptions, and maximize recoveries for our clients. Whether handling a straightforward auto claim or a complex multi-party case, Viking provides the expertise and technology-driven solutions needed to resolve claims effectively.
